FluMist Flop Dogs MedImmune

Wyeth's marketing clout had encouraged many on Wall Street to predict that FluMist would be a success. It hasn't been.

The drug -- at $46 a dose -- was priced at least twice that of traditional flu vaccines, and markups by physicians' offices often widened that gap. FluMist was only approved by the Food and Drug Administration for healthy people between the ages of 5 and 49, thus missing the most vulnerable flu patients -- the elderly, the very young and the very ill.

Insurers were reluctant to reimburse for FluMist, and the company experienced some cumbersome shipping and storing issues in its efforts to convince pharmacies to stock the product. Sales came up short, despite the eventual offering of rebates and the signing of a contract with the federal government to provide low-cost FluMist after the supply of flu shots had run out during a brutal flu season.

Analysts still lack a clear idea of what will happen to Wyeth. Mott said he had hoped the relationship would have been resolved by Monday. "The dialogue is continuing," he said. That means no decision has been made on the pricing or the amount of production of FluMist for the next flu season.

Several analysts have suggested that Medimmune should part company with Wyeth, saying that Medimmune would have a better chance of at least breaking even without having to share the profits with the giant partner. (Recently, Wyeth shares were up 28 cents, or 1%, to $39.78.)

Separating from Wyeth, some say, would enable Medimmune to charge less for FluMist and achieve a profit without having to produce as much of the vaccine. (Of course, Medimmune would have to hire more sales representatives.)

Even Mott sounded like a Wyeth breakup was in the works, offering comments Monday such as "the speed and decision-making with one party would be enhanced."